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31 Mar 2015
USD/JPY drops below 120.00
FXStreet (Mumbai) - The USD/JPY pair fell below 120.00 levels as the traditional safe haven assets – Yen, Gold recover from their lows against the USD, tracking losses in the major European equity markets.
Yen gains as Treasury yields fall
The Treasury prices also gained in line with other safe havens, pushing the yields lower. The 10-year yield in the US fell 1.3 basis points to 1.948%, thereby lending support to the Japanese Yen. Consequently, the USD/JPY pair was pushed lower to 119.85, from the high of 120.34.
Moreover, the safe haven assets have recovered from their lows against the USD as the major European equities extended losses. The German Dax and London’s Ftse now trade almost 1% lower. The Yen could extend gains further if the US equities fall.
USD/JPY Technical Levels
The immediate resistance is seen at 120.46 (Feb. 11 high), above which gains could be extended to 120.81 (Dec. 23rd high). On the flip side, a break below 119.59 (50-DMA) and 119.23 (100-DMA).
Yen gains as Treasury yields fall
The Treasury prices also gained in line with other safe havens, pushing the yields lower. The 10-year yield in the US fell 1.3 basis points to 1.948%, thereby lending support to the Japanese Yen. Consequently, the USD/JPY pair was pushed lower to 119.85, from the high of 120.34.
Moreover, the safe haven assets have recovered from their lows against the USD as the major European equities extended losses. The German Dax and London’s Ftse now trade almost 1% lower. The Yen could extend gains further if the US equities fall.
USD/JPY Technical Levels
The immediate resistance is seen at 120.46 (Feb. 11 high), above which gains could be extended to 120.81 (Dec. 23rd high). On the flip side, a break below 119.59 (50-DMA) and 119.23 (100-DMA).